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The three knobs

During my early years in large scale project management with GE, I was exposed to an idea by an outside advisor which he referred to as the three knobs. In essence, every project is ultimately controlled by turning (up or down):

1. The time knob - The duration of a project (e.g. implementation, ROI, etc.);

2. The money knob - The dollar investment; and/or

3. The people knob - The human capital investment.

Once a project is launched, those three knobs are your only way of changing the outcome (assuming no change in project scope).

For example, when the project runs into an unexpected challenge that requires additional time and effort, you have a few choices:

1. Turn the time knob, extending the duration of the project, while holding the money and people knob steady;

2. Hold the time knob where it is, and turn up the money knob, people knob, or both; or

3. A combination of knob turning (a little project drift, a little resource add, etc.)

This may sound ridiculously obvious, but I can assure you that it is not. Take the challenge of increasing sales and margins.  

To start with, most organizations are reluctant to even pause and create a detailed "project plan," which identifies customers or markets, key insights, specific activities, resources required, milestones, etc. 

Why? Because it will take time, resources and effort, and they don't want to turn up the people or money knob. Especially during tough economic times, when they're doing everything they can to cut costs and reduce the number of people needed to operate the business.

That's why we're seeing the recent surge in companies replacing their pr and advertising agencies. It's easy. It doesn't require a difficult decision to turn a knob. There is no out-of-pocket cost and no one has to do any soul-searching or the difficult work of organizational change.

They simply shift the present level of dollar investment in communication and persuasion to somewhere else, and lull themselves into a false sense of competence.

Robert Louis Stevenson wrote, “Most of our pocket wisdom is conceived for the use of mediocre people, to discourage them from ambitious attempts, and generally console them in their mediocrity.”

Don't acquiesce to mediocrity. Pause and take a clear-eyed view of the true value of your product and service offerings.  Bring in quality thinkers to work with you and challenge you to bring what you do to life for the benefit of your people and your customers.

Now is the time, while everyone else is numb and blabbering, to turn up the money and people knobs and create something exceptional.  Today's marketplace demands ambitious attempts.

Posted January 19, 2010
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